..

- .. '*~GROUPII - PAPER6INfORMATIONTECtiNOlOGY& STRATEG'CMANAGEMENT

Roll No...............................r MAY 2010

IPCCGROUP.II PAPER-7

INFORMATION TECHNOLOGY

AltO STRATEGICMANAGEMEIT

Total No. of Questions-lO] [Total No: of Printed Pages-IO

Time Allowed-3 Hours Maximum Marks"",lOO.

FRG

Answers to questions are to be given only in English except in the case of candidateswho have opted for Hindi medium. If a candidate who has not opted for Hindi

medium, answers in Hindi, his answers in Hindi will not be valued.

Answers to Sections A..and B should be given in separate sets of answer-books.

SECTION-A

Attempt all questions.

Marks

1. (a) Describe briefly the following terms: 5xl=5

- (i) RISe

(ii) SCSI

(iii) WiFi

(iv) Linked List

(v) Metadata.

(b) Explain each of the following: 5xl=5

(i) Mirror Log

(ii) Open Source Software

(iii) Fire wall

(iv) Intranet

(v) Multitasking.

(E&H) FRG P.T.O.

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T~HiAE)"'f\M :;lmlA.~q j~r,A2. Answer the following:

~V ~,Vdi' 11~.

(a) Explain the value added services that a Data Centre provides.

'(b) Explain different core phases that are required in developing a backup and..recovery strategy.

3. (a) Discuss the various attributes of Local Area Network (LAN).

(b) What is Integrated Services Digital Network (ISDN) ? Write its advantages.

4. The Income-tax for the employees of an organization is calculated on the basis of

their Gross Incom'e and the Investments made by them, under Section 80CCC.The taxable income is calculated according to the following rules:

Taxable Income = Gross Income - Investments provided investments are lessthan 1 lac. Otherwise

Taxable Income = Gross Income - 1,00,000

Following rules are applied to calculate the Income-tax, on the Taxable Income:

Taxable Income Income-tax

(i) 0-1,60,000

(ii) 1,60,001-3,00,000

(iii) 3,00,001-5,00,000

(iv) 5,00,001 and above

Nil

10%, on the excess of 1,60,000,

14,000 + 20% on the excess o( 3,00,000

54,000 + 30% on the excess of 5,00,COO

Also an educational cess of 3% of Income-tax is levied on all the employees, irrespectiveof the income.

Employee number, Name, Gross Income, Investment amount is given as input.,

Draw a flow chart to calculate the Income-tax payable by each employee.. c,

5. Write short notes on the following:

(a) Stages of Data Mining

(b) Bluetooth Technology.

(E&H) FRG

-

~1

,..

5

5 4

5

5

10

5

5

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(3 )

FRG Marks

SECTION-B

Attempt all questio~s.

6. State with reasons which of the following statements is correct or incorrect :

(a) Globalisation means different things to different people.

3x2=6 4

-;

(b) Production strategy implements, supports and drives higher strategies.

(c) Benchmarking and Business Process Reengineering are one and the same.

7. Briefly answer the following: 3x2=6. -

(a) Need for Turnaround Strategy

(b) Grand Strategy Alternative during Recession

(c) 'Shared Vision' and 'Vision Shared'.

9. Michael E. Porter has suggested three generic strategies. Briefly explain them. 3+1+3

What is the basic objective to follow a generic strategy ? In what situations can +3=10,the three strategies be used? Identify the type of strategy used in the following

examples:

(a) Dell Comput~r has decided to rely exclusively on direct marketing.

(E&H) FRG p.T.a.

8. (i) What tips can you offer to write a 'right' Mission Statement _? 2x4=8

(ii) An industry comprises of only two firms-Soorya Ltd. and Chandra Ltd. Fromthe following information relating to Soorya Ltd., prepare BCG Matrix:

Product Revenues Percent Profits Percent Percentage Percentage(in Rs.) Revenues (in Rs.) Profits Market - Industry

Share Growth rate

A 6 crore 48 120 lakh 48 80 ,+ 15

B 4 crore 32 50 lakh 20 40 + 10

C 2 crore 16 75 lakh 30 60 - 20

D 50 lakh 4 5 lakh 2 5 - 10

Total 12.5 crore 100 250 lakh 100

, )1

~ ~

(4 )

FRG Marks

(b), "Our basic strategy was to charge a price so low that microcomputer makerscouldn't do the software internally for that ~heaply."

(c) 'NDTV', a TV Channel has identified a profitable audience niche in the electronicmedia. It has further exploited that niche through the addition of new channelslike 'NDTV Profit' and 'Image'.

..

10. Read the following case and answer the questions given at the end:

Subhiksha (prosperity in Sanskrit) began with a single grocery store at Chennaiin .1997. Subhiksha stores increased from 50 in 2000 to 140 by 2002-03 (spreadacross 30 towns in Tamilnadu) to 670 by 2006-07 to 1650 by September, 2008. Itsearly s~ccess was due to its business model based upon no-frills/deep discount andhigh level of neighbourhood focus. Its decision in 2004 to go national from aregional player at a rapid pace proved wrong. With the growing ambition to gonational, focus shifted from value to customers to creating valuation for self. Thecompany had recruited all the employees to foray into consumer durables also. Itsrevenue increased from Rs. 278crore from 140 stores in 2005 to Rs. 2305 crore- -

in 2008 with a capital base of Rs. 32 crore. Subhiksha's profit after tax for2007-08 was Rs. 41 crore. It had invested heavily, largely using debt, and paybackstook longer than expected. Repayment of debt had no relationship to cash flow. Inthe end the company had liabilities of Rs. 900 crore.

Around January, 2009, the company had started to shut down stores pan-Indiaand in February, the top management quit the firm, not just because it defaultedon rentals of its outlets and salaries since October, 2008. Today all ~he stores areclosed. Major suppliers had stopped supplies after it defaulted on payments. Itasked its employees to take home groceries; and go on leave without pay. Manyemployees did not get their salaries. Initially the company was confi,dent ,to restructureand remain in business.

Indian retail industry comprises of 12 million mom-and-pop stores and kiranastores (many of whom have also started innovating) aI;ldunknown number ofhawkers in the unorganized sector working on small-sized stores and with low orno rentals and salaries and the organized retailers (market share not more thanI

5%). -

The emergence of a large young population and a growing middle class with strongdisposable incomes and credit card culture are the drivers of the organized retail,a mix of two types - ones going in for huge expansion announcements and othersfollowing "slow and steady wins the race strategy". The industry operates not on

(E&H) FRG

~( 5) ,

FRG

a very ,hefty margin. The yearly top-line' growth is'likely to remain around 10-15%as against forecasted 35% this year. Compared with players like Pantaloon, Reliance,More, RPG and even Nilgiri's (which has private equity funding), Subhiksha hasno large group's backing (except Shri Azim Premji having 10% stake). The strategywas to raise more debt and keep equity low. During 2006, Subhiksha had a goodchance to make an initial IPO or raise private equity money, but it was in questof creating higher valuations. Suddenly retail was no longer so hot and thecapital tap had gone dry. Due to inability to raise more debt, working capital wasdiverted to expand. Many of the organized retailers have survived the downturnthrough transformation in their strategies and tactics. However, one thing iscertain th,;tt footfalls have declined for the organized retail.

Debt-ridden retailer Subhiksha Trading Services Ltd. has begun its second inningsin February, 2010, with the launch of its first cash-and-carry store (the boardoutside the outlet reads Subhiksha Maligai Arisi Mandi) in Thiruvanmiyur inChennai - at its first ever retail outlet). "Subhiksha's model will be different thistime around and will not directly engage with customers," said an industry source.

Questions:

(a) "To understand the nature of competition certain questions need to be answered."What those questions are?

(b) Who were the competitors of Subhiksha ? Do you think they were betterequipped than it ?

(c) What, where and how the business strategy of Subhiksha might have gonewrong?

(d) If you were the strategy consultant to the Organised Retailers Association ofIndia, what will you advise to control the cost and convert the threat ofdropping footfalls and declining sales into an opportunity? .

(e) How is a Cash-and-carry store different from a Retail store? Name any othersuch Cash-and-carry store in India. ' ,

(E&H) FRG

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(Hindi Version)

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Cffi 1:fD!Wm~ ~ l=fT~ ~ ~ ~, 7:ffu:~ if ~ ~ ~,<TI~ fu";<ftif ~ 71it ~ Cfil ~~icn'1 ~ ~ I

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1. (31) r'1~r<1r(gd~1~lctrw.i'iqft ~ ~ ~ :

(i) RISC

5xl=5

(ii) SCSI

(iii) .WiFi

(iv) ffiCfS ft;:rR (Linked List)

(v) iJc.I-SIc.1(Metadata).

(~) r'1~r<1r(gd Cf)) '~'P-l~I~l!, :5xl=5

(i) ~ 'ffi11(Mirror Log)

(ii) ~ ~ *iTlfC.~~~(Open Source Software)

(iii) "1:fil1Rcrfz;r (Fire wall)

(iv) ~~T~c. (Intranet)

(v) ~~lcTr~jl (Multitasking).

2. r'1~r<1r(gd ~ ~ ~ :

(31) ~ ~ctr4id ~ (Value added services) f5Rq;1 ~ ~ 6m ~ (Datacentre) 'CfmfT%, ~ *i~~I~l!, I

5

(~) ~3T11 ~ mftr ~I.;((gl (Backup and recovery strategy) Cf))fcrcFim coG~ ~ cnTif

(Core phases) Cf)) *i~~I~l!, I

5

(E&H) FRG

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( 7 )

FRG Marks

3. (31) ~ !$r ~ (LAN) ~ lJ&:r ~ (Attributes) cn1 fct~-q"'11~ I

(~) ~.-cl~~~"ftcrTf~f"1G~~ (ISDN) CflIT%?~ m ~ ffi'q f(1f~~I

5

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4. ~ ~ ~ q,~-qIR<1I'bRT ~ ~ ~ ~ (Income-tax) cn1 7TURT~ ~ 3W1 ..

(Gross income) ~ '1:1ro 80CCC ~ 3Mf"lfu~ bRT~ ~ fctPt<1ljl (Investments) 1R

3TImRo % I Cfil:-~ 3W1 (Taxable Income) cn1 7TURTRl4 ~ "B men % :

10

Cfil:- ~ 3W1 = ~ 3W1 - fctf1<1ljl, ~ (fCfi"fctf1<1ljl 1.0 ~ "B Cji""qt 31~

Cfil:-~ 3W1 = ~ 3W1 - 1,00,000

Cfil:- ~ 3W:r 1R Rl4 ~ bRT ~ cn1 7TURTcn1 ~ % :

Cfil:- ~ 3W1 ~

(i) 0-1,60,000 ~ ~ (Nil)

(ii) 1,60,001-3,00,000 1,60,000 "B 31f~ cn1 Cfil:-~ 3W1 CfiT10%

(iii) 3,00,001-5,00,000 14,000 + 3,00,000 "B m~ cn1 Cfil:-~ 3W1 CfiT20%

(iv) 5,00,001 "B 31f~ 54,000 + 5,00,000"B 31f~ cn1 Cfil:-~ 3W1 CfiT30%

dY(lm ~ 31fuftm, ~ q,~-ql{j cn1 ~ CfiT3% ~~ ~ (Educational cess) ~

iMT, -m '1ft~ 3W1 m I

q,~-q1(1 CfiT~, ";flli, ~ 3W1 ~ fCtf1<1ljl~ % I

~ cn1 7TURT~ ~ fum:~ ~ m (Flow chart) ~ I

5. f1~fc:1f~\1 1R ma;n:r fc.UJful<1ifc:1f~~ :

(31) ~ ~1~F1jl (Data mining) ~ M~ TRUT

(~) ~~ ~~'Cj1~1q,1(Bluetooth technology) I

5

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6. CfiRUT~ ~ Ffj f1~f~f~\1 Cfi~ if "B ~ ~ 31~ ~ ~ :

(31) ~:{ctlq,(ul CfiT31f~ f~-f~ ffiTIT~ fum:f~-f~ % I

3x2=6

(E&H) FRG P.T.O.

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(8 )

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Marks

C~) d~IC\1 ~Q~-q11 ~ if ~ Cfl'ffi (Higher) ~Q~-q113TICf)f q,1<.jf..::t<.j1,-w:r$i 3fu:

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('B) I ~'-qj.'lIfct~I' 3fu: 'o<.jcj-l;il<.j"9:1: ~?llq,~ul' ~ ~ m ~ I ..

7. f1~f~f~c1 ~ ma;n:r '3m ~ : 3x2=6

(31) ~ ~:!>-q1 (Turnaround) ~Q~ -q11 Cfft 3-ilcj~<.jq,c11

c~o ~ ~ ~ ~~Q~-q11 fCjq,<;y

('B) '~~I~n~c1 ~ ~ B"a:<1'(Shared vision) 3fu: '~ ~ B"a:<1(Vision shared)

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8. (i) I~' ~wfC\~f1B"a:<1~ ~ ~ :mq cpn ~ ~ ~ ~ ? 2x4=8

\ii) ~ ~ if eft tpif-~ fur. 3fu: TRT fur. -I;i~lfcj~~ I ~ fur. if~ f1~f~f{Slc1

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\JJlfc1llc1 ~Q",-q11 ~ ~ Cf)f ~~ ~ cpn m ~? fcn;:r .~ if ~ cfR+3=10

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(E&H) FRG

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(.if) 3WI (. if) C11'q fdIc1c11 fdIc1c11

6 48 120 C11"& 48 80 + 15

4' 32 50 C11"& 20 40 + 10

2 16 75 C11"& 30 60 - 20

50C11"& 4 5 C11"& 2 5 - 10

12.5 100 250 C11"& 100

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FRG Marks

(~) I~ "it it eft' -q:cnit.eft. ~, ~ ,~ct<;TF1cf1Ylf~~1 if -q:cnffi~ ~ -;:frn (~

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670 3fu: f-!;-ld~"-, 2008 ~ 1650 m ~ I ~ -mD'q'Cf) -!;-I\.f)C1dI ~ CfIl1-~ (No-frills)

W ~ ~ 3fu: '3""'Cq- ~ ~ cn1 Wffif 'R ~ ~ d11 ef -!;-IIfqcfI ~ 'R 3TImfu:r

2ft I CfEf,2004if ~-~ if ~1<:r-~ 'R ~ cn1~ YQ\cflcflia:rr if ~ TI~;mcn1'~ ~ 'iI1~ m iI1fu'Q:~~icfl'i ~ 'R ~ ~ I ~ TI~ ~ Wlffi'

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~ ~ ~ if, 3-t~~lfod~ iI112 fyfC1~'i '1ffii-fi:rc:rT~ (Mom-and-Pop stores),

mRT ~ (3RCfi ~ 'ictl'ilcfl"-UIcn1~ if m ~) 3fu:~~"-I~IM, \5fTCf)l=f <:fT ~~ a~ ~ iI1~-31fCfm:~ ~~, a~ ~~Ifod~ d1cj"-"'I~I(~~ 5%if '.31f~:riff) 3iffi'~ I '\,

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~3TI11~ crf ~ d1ct-!;-ll~iI1m ~I ~;IfOd~ d1ef-!;-ll~~ ~ Cf)f l11-3f1JT~--q:cn \5fT

W fcffim:~ ;mif ~ ~ 3fu: ~ II * 3fu:W-R~ ~ ~" ~UI'iI fd Cf)f3r:rwft~I ~ ~ ~ W ~ (Margin) 'R Cf)f11~ ~ I ~ if 3-tjylf'id~ ~ 35%

'(E&H) FRG p.T.a.

( 10 )

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("G) 3m 3W:J~jlfdd ~ ~~~1<11~ ~ ~{1IQenl(ira, or "ffi1ffir1~~UIq~ ~ ~~ YC\~IYI'3W ~ ~ ~ <it 3lCfm-B~ ~ ~ CFIT ~. ~ ?

(~) ~ ~ cft-11ffim(Cash and carry) ~ Fnm ~ ~ "B~ ~ f~ % ?'qffif -B W«r Fnm 3:p:J ~ -~ - ~ ~ CfiT~ ~ I

(E&H) FRG

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